Already, let's check out the health saving accounts test questions. There will be four scenarios, and they do not require you to prepare a tax return. So we're gonna read the interview notes for each scenario and use our training and resource materials to answer the questions. First scenario: Leo Williams sounds like a great guy. Miss Leo Williams says here that he's single and 45 years old. He works as an IT manager, and his W-2 shows he makes about 47 grand a year. He participated in his employer's self-only coverage high deductible health plan all year, and Leo does not have any other health coverage. Now Leo has had an HSA for two years, and his employer contributed $1,500 in 2017 to his HSA, and Leo's aunt contributed $200 to his HSA. She seems like a great aunt, let me tell you. Leo is also a US citizen and has a valid social security number. Excellent, excellent, excellent. So the first question says, "Is Leo an eligible individual for HSA purposes even though he did not make his own contributions?" Well, let's check it out. Our go-to for these HSA questions, at least for my scenario, are gonna be in the tab E. So let's jump right to it. We'll probably want to look under the E35 section. So let's check it out. These contributions made in 2017 are entered here on the tax later software, and these include anything basically, but they do not include our employer contributions. So the question stands, does our aunt's contribution count as our own contribution? Well, let's check out this. It says, "Employee contributions are entered here. Contributions by relatives and friends are considered to be made by taxpayer." So according to our little info here, it looks like Leo is indeed...
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8889 2023 Form: What You Should Know
Jan 13, 2023 — In this example, line 13 is used. There's a catch—there is no tax deduction for the employer's contribution. If you're using another form, you might want to be sure you know how to use it before you take it. How to Take Form 8889 Deductible HSA Contributions The rules for paying for medical expenses in a Roth HSA change if you have an HSA tax-deductible contribution. For example: if you have an HSA and an after-tax medical payment (see below), the following rules apply: Medical Payment Deduction Medical Payment Deduction: An HSA contribution is a medical expenses deduction if, at the end of the tax year, you (a) have an HSA and (b) are eligible to contribute to an HSA. Note: HSA contribution amounts have changed significantly in 2023 from the 2023 to 2023 tax year, see the 2023 HSA contribution limits and the 2023 HSA contribution guidelines. Medical expenses. Health insurance premiums, including deductibles and coinsurance, are considered ordinary income and are not allowable deductible donations. Deductible expenses include payments by an uninsured recipient to a health provider for medical care. Medical expense deductions are allowed only if the total cost of medical care covered by the HSA exceeds its deductible as a medical expenses deduction. A health care provider is any health insurance company or health care clearinghouse engaged in the business of providing medical care to individuals. The following examples are from the HSA tax form. Example. You pay 200 out of your HSA each month for medical care. The following month, you go to the doctor, and you are billed 75 because you went to the doctor for two days in a row. Deduct the cost of 75 from your HSA to pay for your doctor bill. Do not include your medical expense deduction in your income, but do claim it on Form 1040. Example. You had an HSA and paid for medical care for a family member. At the end of that tax year, you had 400 in HSA for medical care for yourself and another 2,000 in HSA deductions. Your 2,000 HSA deductions were not allowed because you failed to include them on Form 1040. Example: In 2018, you had a medical treatment at a medical facility.
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